Published: 2020-05-06 16:17:16 CEST
LHV Group
Company Announcement

AS LHV Group established the non-life insurance undertaking AS LHV Kindlustus

Today, on 6 May 2020, AS LHV Group and Toveko Invest OÜ signed the foundation resolution of non-life insurance undertaking AS LHV Kindlustus, and approved the company’s articles of association. The main business of the undertaking will be offering non-life insurance products. Obtaining an activity licence from the Financial Supervision Authority is still required to commence the operations of the insurance undertaking.

The share capital of AS LHV Kindlustus is EUR 1,250,000, which has been divided into 1,250,000 shares with a nominal value of EUR 1, in a way that 65% of all shares of AS LHV Kindlustus (812,500 shares) belong to AS LHV Group, and 35% (437,500 shares) belong to Toveko Invest OÜ. The new undertaking is a subsidiary of AS LHV Group, and belongs to the LHV consolidation group. Pursuant to an agreement of the shareholders, the share capital of AS LHV Kindlustus will be increased to EUR 5,000,000 before obtaining the activity licence.

From the standpoint of LHV Group, the purpose of establishing a non-life insurance undertaking is to provide additional value to LHV’s retail clients, and, more broadly, to improve insurance opportunities on the Estonian market while acting profitably. Offering insurance protection to the clients of LHV and Euronics will create a synergy that guarantees the insurance undertaking with enough insurance premiums to cover damages and costs, and to achieve profitable operation immediately upon the commencement of insurance operations.

AS LHV Kindlustus intends to apply for an activity licence during this year. From establishing the company to receiving the activity licence, LHV Kindlustus will bear the costs and generate a loss. LHV Group will publish the financial forecast related to the subsidiary after receiving the activity licence.

The company’s Supervisory Board includes four members: Madis Toomsalu (Chairman), Erki Kilu, Jaan Koppel, and Veiko Poolgas. The first meeting of the Supervisory Board of the company was also held today.

Tarmo Koll and Jaanus Seppa were appointed Members of the Management Board of AS LHV Kindlustus. Tarmo Koll’s powers as a Member of the Management Board come into effect as of today. Jaanus Seppa will take his place as Member of the Management Board as of 1 September 2020, also becoming the Chairman of the Management Board. Members of the management of AS LHV Group do not have personal interests in establishing AS LHV Kindlustus.

Tarmo Koll is a Member of the Management Board of AS LHV Kindlustus. Before that, from 2014 to 2019, he was the Chief Financial Officer and Head of Estonian Operations of the insurance company Ergo Balti, and was a Member of the Management Board of Ergo Insurance SE and Ergo Life Insurance SE. Before that, he operated as the responsible actuary and head of department in the same company. Tarmo Koll is the owner and Member of the Management Board of Aktuaarsed Lahendused OÜ, and he also belongs to the Management Board of the Estonian Actuarial Society. Tarmo Koll holds 530 shares of AS LHV Group.

Jaanus Seppa was appointed Member of the Management Board of AS LHV Kindlustus; his powers will commence on 1 September 2020. Previously, Seppa worked at the Lithuanian non-life insurance undertaking Compensa Vienna Insurance Group ADB, being a Member of the Management Board and the Head of the Estonian branch from 2015 to 2019. Jaanus Seppa holds 9248 shares of AS LHV Group.

Madis Toomsalu is the Head of AS LHV Group and the Chairman of the Supervisory Boards of AS LHV Pank and AS LHV Varahaldus. As of today, he is also the Chairman of the Supervisory Board of AS LHV Kindlustus. He is also Member of the Management Board of MTÜ FinanceEstonia. Madis Toomsalu and the persons related to him own 53,819 shares of AS LHV Group. Madis Toomsalu is entitled to a total of 90,920 shares of AS LHV Group for the options issued in 2018, 2019 and 2020.

Erki Kilu has been the Chairman of the Management Board of AS LHV Pank since 2008. In addition, Mr Kilu serves as a Member of the Supervisory Board of AS LHV Finance, AS LHV Varahaldus and AS LHV Kindlustus, and is the Chairman of the Management Board of the Estonian Banking Association. Erki Kilu holds 133,200 shares of AS LHV Group. He has the opportunity to acquire 87,214 shares of AS LHV Group for options issued in 2018, 2019 and 2020.

Jaan Koppel has been a member of the Supervisory Board of AS LHV Finance since 2013, and as of today, he is also a Member of the Supervisory Board of AS LHV Kindlustus. Additionally, he serves as a member of the Management Board of OÜ Toveko Invest, Sandman Grupi Aktsiaselts, Osaühing Raglor, Euronics Baltic OÜ, OÜ Veicoland and SND Invest OÜ; he is the Chairman of the Management Board of SIA “Euronics Latvia” and a Member of the Supervisory Board of aktsiaselts METAAN and Aktsiaselts Antista. Jaan Koppel and the persons related to him do not hold shares of AS LHV Group.

Veiko Poolgas has been a Member of the Supervisory Board of AS LHV Finance since 2013, and as of today, he is also a Member of the Supervisory Board of AS LHV Kindlustus. Additionally, he is a Member of the Management Board of Sandman Grupi Aktsiaselts, SIA “Euronics Latvia”, Osaühing VP Invest & Holdings, and OÜ Veicoland. Veiko Poolgas and the persons related to him do not hold shares of AS LHV Group.

LHV announced its intention to establish an insurance company with the 18 February stock exchange announcement: https://cns.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=922262&messageId=1162155. Permission to consolidate was received from the Competition Authority in April.

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. LHV employs over 450 people. LHV’s banking services are used by nearly 217,000 clients, and pension funds managed by LHV have nearly 178,000 active clients.


Priit Rum
Communication Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee